Applying Support and Resistance

Determining Support/Resistance Zones
Before applying the forex trading strategies outlined in this course you will need to properly determine support and resistance zones. In this section you will be taught the basics of finding Support and Resistance zones on your charts. You will also learn various characteristics that determine the strength of a support/resistance area.

Support and resistance zones can be effective on any time frame chart; 15 minutes and up. However, just like the 2 trading strategies in this course, support/resistance zones hold more weight on higher timeframe charts. Since the forex strategies described in this course do not provide very frequent setups on higher frequency charts it may be in your best interest to practice them on smaller time frame charts, such as the 15 minute or 30 minute time frames. This way you will be able to demo trade these strategies and see the trade setups form.

It will be in your best interest to draw support/resistance zones on your forex chart from the monthly time frame down to the timeframe you are trading on. You can draw each formation in a different color. This way when your trading formations take place you will know which support/resistance area they are near and be able to use it as a guide. To reiterate, the longer timeframe that the support and resistance lines are drawn on, the more significant the line.

There are 6 rules which can be used to draw effective support and resistance lines.

Forex trading involves significant risk of loss and is not suitable for all investors. While you can earn a cash bonus,
you can also lose money due to the inherent risk of trading. Read full disclosure.

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